India’s housing market stays resilient as festive demand varies across cities

Traditionally, the real estate sector is heavily dependent on festive sales, with about 30%-35% of annual sales taking place in the October-December quarter. Activity typically picks up during the festive months of October and November.But this time, the market has entered the festive period against a more challenging macroeconomic backdrop.Geopolitical uncertainty and tighter liquidity can weigh on buyer sentiment, while the Reserve Bank of India’s 25-basis-point repo rate hike to 5.50% on October 7 signals a shift towards monetary tightening. Higher borrowing costs may influence affordability, particularly among interest-rate sensitive buyers.In MumbaiMumbai, India’s biggest real estate market in terms of volume and value, has shown resilience during the festive period.Sales rose from 23,185 units in Q1 to 25,449 units in Q3, bringing sales for the first nine months of 2026 to 72,804 units, up 1% year-on-year. This performance stands out against the eight major cities, where Q3 sales declined 1% year-on-year to 86,767 units, according to a study by Knight Frank India.Demand is gradually shifting towards higher-ticket sizes, although homes priced below ₹1 crore in the suburbs continue to account for the largest share of sales, according to the report.On festive-period sales, Vivek Rathi, national director of research at Knight Frank India, a property advisory, consultancy and management services firm, says, “Mumbai’s residential market entered the festive season on a strong footing, with Q3 2026 sales reaching their highest quarterly level since 2018.”“However, for Diwali, we expect residential demand to remain resilient, supported by the strong sales momentum established in Q3, festive offers and developer launches timed around the season. Given the relatively modest increase in borrowing costs, a sharp near-term correction in demand appears unlikely,” he points out.There can also be some timing-related shifts, with buyers advancing purchase decisions ahead of anticipated further rate hikes.“This may support festive-period transactions but could lead to a softer patch thereafter. The sustainability of demand will depend on affordability, buyer confidence and developers’ pricing strategies,” he states. Mumbai-based developers have echoed the same sentiment.Buyers today are seeking homes that support a higher quality of life. “Beyond physical infrastructure, they are increasingly valuing wellness, community living, convenience, and thoughtfully designed spaces that enrich everyday experiences,” says Amitesh Shah, CEO of the Mumbai zone at Godrej Properties, a real estate developer.Similarly, real estate professional turned developer Raahul Maroo, founder and CEO of Tatvm Group, says, “We anticipate property registrations during this period to remain broadly in line with last year, with potential growth of up to 5%.”According to him, the sub-₹2 crore housing segment will continue to be the primary growth driver, given its affordability and wider buyer base. This segment accounted for nearly 80% of Mumbai’s property registrations during the corresponding period last October.In DelhiDevelopers in the north have lined up offers to attract homebuyers.“A combination of considered homebuying decisions, attractive value propositions and a long-term perspective continues to shape residential demand during the festive season,” says Saurabh Paliwal, senior vice-president of sales at Business Park Town Planners (BPTP Ltd.), based in Delhi-NCR.But, given the hard economic realities, a segment of homebuyers is taking a cautious approach.“Homebuying decisions are increasingly driven by the long-term value of the product, construction quality, location and customer confidence, rather than short-term incentives or festive discounts,” adds Sudeep Bhatt, director of strategy at Whiteland Corporation, which has projects in Delhi-NCR. Getty Images/iStockphoto India’s residential market is holding steady rather than accelerating, and the festive season so far reflects that.“These factors weigh most on buyers in the affordable to mid-segment category, where sales are already softening. However, premium homes, are likely see healthier demand around Diwali, particularly well-located and well-executed projects,” says Bamasish Paul, co-founder, managing partner and CEO of Etonhurst Capital Partners, a Mumbai-based real estate fund management platform.In PuneIn neighbouring Pune, developers have reported strong inquiries, but conversion is taking time.Anand Agarwal, managing director and CEO of Ceratec Group, a real estate and construction group based in Pune, says that buyer interest does not always translate into immediate bookings.“In Diwali season, we are hopeful of an improvement in bookings, though we expect the pickup to be gradual and to vary from project to project,” he emphasises.Ravi Agarwal, chairman and managing director of Lloyds Realty Developers Ltd., a real estate developer based in Mumbai with projects in multiple cities, says the market is increasingly shaped by informed, value-conscious home-buyers rather than sentiment alone.In HyderabadHyderabad’s real estate market has remained stable, with the luxury and mid-luxury housing segments continuing to witness healthy demand, even as the affordable housing segment faces a shortage of fresh inventory.Jaideep Reddy, president of CREDAI Hyderabad, says that sales during the festive period have been decent, although they may not have matched the levels recorded in previous years. He attributes this partly to the long weekends during the festive season, which may have influenced home-buying decisions. “Property purchases during the Navaratri period were generally subdued, with prospective buyers often waiting until Diwali to make their decisions. With the Diwali buying season only beginning, it is too early to draw conclusions about overall festive sales,” he adds.On the broader market scenario, he says the luxury and mid-luxury segments are performing well, while the affordable housing category faces a supply-side challenge. “Flats priced between ₹60 lakh and ₹70 lakh have become increasingly difficult to find in Hyderabad, with ₹1 crore emerging as the new benchmark for what is considered affordable housing.”Addressing concerns over unsold housing inventory, Reddy says the market remains stable and is not witnessing sharp fluctuations in either direction. He adds that housing development is a continuous process, with projects typically taking five-seven years to complete. This makes it important to assess market supply and demand over a longer period.In ChennaiChennai’s plotted development market is witnessing a shift towards suburban and peripheral locations, particularly along the southern and western corridors. Areas such as Guduvanchery, Vandalur, Kelambakkam, Oragadam and Sriperumbudur are attracting buyers on the back of improved connectivity, employment hubs and relatively affordable land prices.“While smaller plots remain an entry point for first-time buyers, there is also growing interest in larger plots of around 1,200–1,500 sq.ft. Compared to last year, plot bookings have increased; people are shifting their investment from another segment to plotting specifically,” says D. Senthil Velan, CEO of Sameera Group, a real estate development company in Chennai.In BengaluruIn Bengaluru and southern markets, Puravankara Ltd has seen a strong response at the start of the festival season.At the company level, Puravankara has recorded pre-sales of ₹2,136 crore in the September quarter, up 62% over the same period last year.“This provides a strong foundation as we move through the festive season. Buyers continue to carefully weigh home prices, borrowing costs and household budgets,” says Mallanna Sasalu, CEO-South, Puravankara Ltd, a real estate company based in Bengaluru.In KeralamIn Keralam, festival season property sales have been “quite good”, and the prospects for Thiruvananthapuram, with its brand new Vizhinjam international seaport and IT sector growth, remain encouraging, according to S.N. Raghuchandran Nair, president, Thiruvananthapuram Chamber of Commerce and Industry (TCCI), and Convener-General, CREDAI-Kerala.“NRI remittances are up after a slump, and the shifts in the national economic policy have left people with a lot more disposable income than before,” he says.V. Sunil Kumar, managing director and founder of Asset Homes, a builder, concurs that the repo rate hike may not have much of an immediate impact.He says, “So far, it has not had any impact. It may have an impact for low-income group (LIG) projects, where a person taking a ₹25 lakh loan could see his EMI increase by ₹350–400.”With a higher-than-national-average per capita income, Keralites’ spending on homes also tends to be higher. “The State’s LIG spending on homes, in this regard, is comparable to the middle-income group (MIG) spending or a step higher than that of many other States,” he adds.S. Adikesavan, a commentator on banking and finance, observes that more important than the actual impact of the repo hike is the general feeling that interest rates will go up from here, signifying the start of a cycle of hikes. “Nobody likes a hike in costs.”In KolkataKolkata’s residential real estate market has shown a sense of buoyancy this festive season, with positive buyer sentiment translating into encouraging enquiries and purchase decisions, says Harshavardhan Neotia, chairman of Ambuja Neotia Group, a real estate business in the region.“While transaction volumes have seen some moderation compared with last year, interest in quality residential developments remains strong, particularly among end-users and NRIs,” he points out.Occasions such as Poila Boishakh (the Bengali New Year, which falls in April) also see heightened purchase interest. “The state’s diverse consumer base and festive calendar collectively create important touchpoints for homebuying decisions,” says Suhel Saraf, managing director of Sugam, a real estate company based in Kolkata.(With inputs from Tiki Rajwi, K.S. Swati and Siddharth Kumar Singh.)